The gold price moved lower closing this week with, falling $14.05 to $1,7460 per ounce. Risk appetites rebounded, sending the price of gold moved to the downside and global stock markets broadly higher. The European Stoxx 600 climbed over 2%. Gold prices advanced after initially falling on the news that France, Italy, Spain and Belgium would temporarily ban short-selling on select stocks in order to calm volatility. Bond yields in Italy and Spain fell on rising confidence as well as expectations that the European Central Bank will continue to purchase the sovereign debt of its fiscally-strapped member states.

Weakness in the gold price came after the CME Group announced an increase in margin requirements on trading in gold futures. The margin hike followed a substantial increase in gold volatility in recent weeks a common maneuver used by the exchanges to calm outsized price movements.

Commenting on the CME’s decision, Dennis Gartman applauded the move. “This is long overdue, and the CME is correct in having done so,” he wrote in The Gartman Letter.

Edel Tully, a precious metals analyst at UBS, offered similar comments. “Considering the large price swings in gold this week, it is not altogether surprising that CME has reacted,” Tully stated.

However, she reiterated her longer-term bullish outlook on the gold price. “While some corrective price action is very likely for gold, particularly from the fresh longs put on this week,” Tully continued, “any pullback will be welcomed by investors who have been waiting for a better buying opportunity.”

About This Blog

Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi